Following our earlier announcements, the Swiss authorities confirmed that VAT rates will be reduced as from 1 January 2018 as a result of 24 September referendum. As expected, the standard VAT rate and the special rate for accommodation will be reduced to 7.7% and 3.7% respectively, whereas the reduced VAT rate applicable on foodstuff, water and other basic supplies will remain at 2.5%. New applicable VAT rates are shown in the table below: How is this impacting your business? The...

Switzerland will reduce VAT rates as from 1 January 2018. Current VAT rates are based on a temporary regime that ends on 31 December 2017, when the new reduced rates will apply. These rates are expected to be reduced as follows: Standard VAT rate will be reduced from 8% to 7.7% VAT rate on accommodation will be reduced from 3.8% to 3.7% Reduced VAT rates applicable on foodstuff, water and other basic supplies will remain at 2.5% These changes may...

Switzerland has announced plans to withdraw the low-value consignment stock relief. This relief is generally applicable in the European Union and Switzerland has traditionally mirrored the EU simplification. According to the EU rules, businesses established outside the EU and selling goods through the internet must charge import VAT on these goods when the value of the shipment exceeds a certain threshold. Member States have the option of setting this threshold on any value between €10 and €22, with most countries...

Switzerland has initiated the legislative changes to introduce a registration threshold on foreign service providers. The suggested amount is CHF 100,000 with an equivalent amount of circa €90,000 . If approved, the implementation of this threshold will allow some businesses that are currently registered in Switzerland to de-register and stop filing VAT returns in the country. This threshold would also apply to non-established companies in Switzerland. None of the Member States have a threshold for foreign non-established companies. Businesses must register...